Le Hong Thuy Tien, CEO of IPP Air Cargo, wife of entrepreneur Johnathan Hanh Nguyen, recently announced that the cargo airline would not seek a license.

This airline planned to have VND2.4 trillion investment capital, of which 30 percent was stockholder equity. If it had been approved, the air carrier would have begun to operate in Q2 2022, with five aircraft, expected to increase to 10 from the third year of operation.

The reason behind the decision was the global recession and fluctuations of air fuel prices. Tien said the airline would consider joining the market at a suitable time.

Businessman Nguyen Duc Thuy established Thaispace, wanting to take the first flight to Phu Quoc, once it got a license. At the time of establishment, Thuy contributed 75 percent of capital, or VND20.016 trillion. His daughter, Nguyen Ngoc My Anh - CEO, contributed VND2.669 trillion.

However, Thaispace has changed the post of CEO, registered charter capital and business model. Thuy is no longer a shareholder and capital contributor of the enterprise.

Vietnam’s richest man Pham Nhat Vuong gave up the plan to run Vinpearl Air. The billionaire explained that the decision was part of his strategy on gathering strength to develop technology and industry.

In 2019, Vingroup applied to establish Vinpearl Air with VND4.7 trillion capital. It planned to begin providing commercial flights in July 2020 with six aircraft in the first year.

In the case of Trai Thien Air Cargo, the Ministry of Transport (MOT) revoked its license before it could take off.

Meanwhile, other airlines had to leave the market after taking losses after a period of operation.

In January 2015, Air Mekong left the market after two years of suspension for fleet restructuring. During two years of operation, Air Mekong gobbled up VND1 trillion.

Music composer and entrepreneur Ha Dung’s Indochina Airlines, licensed in May 2008 and taking off in November 2008, left the market after five months of operation. The global financial crisis in late 2008 and early 2009 had a serious impact on the aviation industry, lowering travel demand dramatically.

Manh Ha